Supply Relationship Management Srm 7.0

Procurement Excellence in Business Suite 7.0
MCLA Webcast Series

Damian Edelberg

Procurement Solution Principal - SAP Latin America

July 2nd, 2009

MCLA Webcast Series – Business Suite

Business Suite Process Platform Business Suite Supply Chain Management
June 19th (SCM)
July 16th

Business Suite Human Capital Management Business Suite Customer Relationship
(HCM) Management (CRM)
June 25th July 23rd

Business Suite Supplier Relationship Business Suite Product Lifecycle
Management (SRM) Management (PLM)
July 2nd July 30th

Business Suite Functional Improvements Application Optimization & Administration
(Enhancement Packs) (Solution Manager)
July 8th August 6th

Contact Person for futher information about past or coming Webcasts: Carina Friguglietti - carina.friguglietti@sap,com

© SAP AG 2009. All rights reserved. / Page 2

Damián Edelberg

SAP Argentina, Buenos Aires -.Joined in 1997
11+ years of SAP experience
Specialized in Procurement & Logistics
Degree in Business Administration
Soccer, Asados, Live Music, Family

Damian Edelberg

SAP Argentina
Av. L.N. Alem 855 Piso 9
(1001) Ciudad de Buenos Aires
Argentina
T 54 11 4891 3000
M 54 911 6459 1946
damian.edelberg@sap.com
http://www.sap.com

© SAP AG 2009. All3
2009 / Page rights reserved. / Page 3

Innovate Your Business

Business Suite 7

Procurement Excellence

Business Suite Scenarios

SRM in One Client

Summary

SAP Business Suite Solution Management



Business Suite 7



SRM in One Client

Summary



SAP definition of Business Suite
Library

Business Suite is a “library of business processes”
Arch.

built on a consistent and modern IT Architecture
IT
Reduced

delivered in modular steps at the pace of the
costs

Customer and at a reduced cost


Efficiency to Drive Innovation
Enhancement Packages Eliminate Major Upgrades

Traditional Upgrades Enhancement Packages
User interface
Enhancement
Package
EhA EhB
EhB
User interface EhA EBPP
MES
Integ.
EhC EhD
EhD
EhC HCM
Sales Functionality
order
EhEforms
EhF
Budget
EhE Executi
Credit EhF
Report
on

Enterprise services
Functionality

Purchase Order
Enterprise services Management

“All or none” “Pick and choose”
Affecting the enterprise Self-contained innovation
Requires thorough regression testing Isolated testing effort
Business case for entire release Business case for target process

© SAP 2008 / JimAll rights reserved. / Page 7
AG 2009. Hagemann Snabe/ Page 7

Driving Synergies Across the Suite
Delivering on one date, Innovation across the Applications

2006 2007 2008 2009 2010

ERP 6.0 EhP1 EhP2 EhP3 EhP4 EhP5 EhP6

CRM 7.0 EhP1 EhP2

PLM 7.0 EhP1 EhP2

SCM 7.0 EhP1 EhP2

SRM 7.0 EhP1 EhP2

Business Suite Synchronized Enhancement Packages
* Future topics release strategy
may be subject
Suite release across the Suite
to change


SAP Business Suite Release Strategy
What does it mean for Procurement?

Continuous Innovation
2006/2007 Enhancement Packages
based evolution pioneered by ERP
2008/2009 Enhancement Packages EhP EhP
EhP
based evolution extended to the
Suite
SAP Business Suite
Stable core available with ERP 6.0
and SRM 7.0.
ERP SRM CRM PLM SCM
ERP 6.0 EhP4 and SRM 7.0 is the
recommended ‘Go-To’ Release as of
Q4 2008.
New functionality will be delivered SAP NetWeaver 7.0
via enhancement packages of ERP
as well as of SRM. Stable Core



Business Suite 7



SRM in One Client

Summary



Complete and flexible solution for organizations in all industries

Procurement
Demand /
Planning and
Analysis
Request Creation
Comprehensive and integrated
Purchase
Request
Processing
Tailored for your industry and all
spend categories and business
models
Payment
RFx
Procurement Processing Strong partner ecosystem

Intuitive role-based access along the
end-to-end process
Invoice Purchase Order
Processing Processing
Goods Receipt
and Service Entry
Supports supplier collaboration

Open and flexible to deploy

Compliant with legal procedures

! Build out of ERP and SRM
functionalities


SAP Supplier Relationship Management
Procure to Pay Process

Ensures Compliance with Integrated End –to-End
Procure to Pay Processes
SAP Business Suite

EhP EhP EhP

Pitch Ensures compliance with integrated
Continuous Innovation
end –to-end procure to pay
ERP SRM
SRM CRM PLM SCM
processes
Value Delivers centralized sourcing and
SAP NetWeaver 7.0
centralized contracts
Stable Core
Enables end to end services
procurement with ERP
Extends the use of the catalog for
all goods and services
Requisition &
Order Management Supports multiple back-ends
Extends supplier collaboration
Centralized Spend reporting delivers enterprise
Supplier
Contracts wide insight
Collaboration
Deployment On premise or Hosted

Centralized SRM
Finance
Spend
Sourcing Reporting
Procure to Pay
Supplier
Qualification &
Evaluation


SAP SRM
Procurement Process & Supplier Collaboration

Requisition & Purchase Supplier Collaboration
Order Management

Easy to Use Self-Service Automate Supplier
Procurement Connectivity
Compliance to Purchasing Confirmation of Delivery
Policies
Visibility into Transaction
Reduce Cycle Times Status
More Efficient, Reduced Fast, Reliable,
Purchasing Cycle Collaborative

© SAP 2008 / Page 13 rights reserved. / Page 13
© SAP AG 2009. All

SAP SRM
Centralized Sourcing & Contract Management

Centralized Sourcing Centralized Contracts

Aggregate Demand and Consolidate Contract
streamline bidding Information
Collaborate with Suppliers Track Contract Compliance
Manage Complex Services Distribute Contract Usage
Sourcing
Extend Sourcing Reach Centralize Contract
and Speed Management and Execution

© SAP AG 2009. All

SAP SRM
Spend Reporting, Supplier Qualification & Evaluation

Operational Spend Supplier Qualification
Reporting & Evaluation

Ease to use prepackaged Flexible web-based surveys
reports Central Survey cockpit for
Role based data access status
Flexible query engine Response Monitoring &
Reminders

Comprehensive Spend Effective Supplier
Insight Management

© SAP AG 2009. All


Business Suite 7



SRM in One Client

Summary



End-to-end Procurement Scenario
UI & Role Harmonization
KEY MESSAGES
Increased business user efficiency via role harmonization
Central point of access and end-user personalization via POWER lists

From traditional… …to Best-Run…

ERP SRM One
Role Role Role

ERP SRM ERP SRM

SAP ERP 6.0 SAP Business Suite 7
SAP SRM 5.0

.

Work Center: Purchasing Document

Service Area

Work List
Overview

Quick Selection
Criteria for
Selected Work
List

Specific Work
List with Actions
to Trigger Follow-
On Activities


Centralized Sourcing & Contract Management
Orchestration of Global and Local Procurement Activities

Strategic goals for SAP procurement
Deliver leading procurement solution for central and de-central procurement processes.
Strong Integration scenarios on process and user interface level between ERP and SRM

Company
Division 1 Division 2 Division 3 Division 4
Spend Category A
Central and
strategic Spend Cat. B
procurement
activities Spend Cat. C

Spend Cat. D

P2P P2P P2P P2P

Procurement Platform


End-to-end Procurement Scenario
Contract Management
KEY MESSAGES
Orchestration of global responsibility and support for best-run local execution
SOA as key to business process efficiency via suite integration

From traditional… …to Best-Run…
Central Contract
SRM

Local ERP Contracts SOA

SOA SOA

ERP ERP ERP ERP ERP

ERP ERP
Call-Off Call-Off

Company Company
Supplier
Relationship
Management
(SRM)

ERP ERP ERP ERP ERP ERP ERP ERP


Tightly Integrated Sourcing Process
Procure to Pay with RFx Processing

e.g. Buyer or
Master Data (Material, Service, Supplier) Master Data Manager
Purchase Goods
Demand RFx and Purchase Invoice /
Requisitio Receipt
Creation Contract Order Payment
and
Planning
e.g. Employee
n
Processin
g
Buyer
* Processin
g *
e.g. Buyer or
Processin
g
Buyer
and
Service
Entry
e.g. Warehouse
Processin
g
Invoicing /
*
or Planner Sourcing Clerk or Project A/P Clerk
Specialist Member

ERP SRM ERP

Integration of ERP and SRM provides robust sourcing capability within
the Procure to Pay scenario:
SAP ERP: Overall demand planning and requirement generation system
SAP SRM: Negotiate and optimize supplier selection
SAP ERP: Procurement execution


Sourcing Integration Processes
Central Sourcing (automatic transfer)

Automatic demand transfer
SAP ERP SAP SRM
from ERP to SRM
Automatic creation of purchase
Purchase Requisition request (shopping cart)
Badi / Automatic extract of data
Config
Configurable by product category
Automatic (No UI) Sourcing Cockpit Business Add-in (BADI) for
customer specific rules for more
detailed control
SRM can receive demands from
RFx multiple ERP systems, including
non-SAP systems
Sourcing Cockpit is used to select
and aggregate demands, which
Purchase Order Contract
may have originated from multiple
ERP systems
Ideal for Centralized Sourcing

The diagram above shows a simplified flow. Depending on configuration and BADI implementation, an RFx can directly create any of the follow-on
documents: an SRM Central Contract, an SRM PO, an ERP Operational Contract, an ERP PO.

Central Sourcing with User Intervention (manual transfer)

Manual demand transfer
SAP ERP SAP SRM
through user interaction
Within CPPR, select ERP
Purchase Requisition purchase requisition(s) and click
on “Transfer to Central System”.
This creates purchase requests
Transfer to
Collective Processing Central System (shopping carts) in SRM
of Purchase Sourcing Cockpit
Requisitions (CPPR) If there are multiple SAP ERP
systems, CPPR can be used in
each ERP system to send
demands to a single SRM
RFx
Sourcing Cockpit is used to select
and aggregate demands, which
may have originated from multiple
Purchase Order Contract
ERP systems
Ideal for Centralized Sourcing


Direct RFx Creation

Direct RFx creation
SAP ERP SAP SRM
Within CPPR, select ERP
purchase requisition(s) and click
Purchase Requisition on “Create RFx”.
Can select an RFx type and
enter bidders and the bid
submission deadline
Collective Processing
of Purchase RFx is created in SRM
Requisitions (CPPR)
If there are multiple SAP ERP
systems, CPPR can be used in
RFx each ERP system to create
separate RFx’s in SRM
A single RFx has demands
from the same ERP system,
Purchase Order Contract i.e. not from multiple ERP
systems
Sourcing Cockpit is not used in
this scenario
Ideal for immediate one-to-one
RFx creation
*For technical reasons, an approved shopping cart is also created


Services Procurement in the Business Suite

Buying company Supplier company
SAP SRM

Sourcing Sales Confir-
RFx order mation Invoice
cockpit
SAP ERP

PM/PS* Purchase Purchase Service
Contract Invoice
order request order entry sheet

Complex Services – Planned Maintenance and Construction

SAP ERP MM-SRV service item with hierarchical structure
MM-SRV service item
with hierarchical structure in sourcing cockpit

Service
specification Service
outlines line



Business Suite 7



SRM in One Client

Summary



SAP SRM One Client

Solution
Procurement features of Ehp4 bundled with SRM in a
concise package
Accelerated deployment (compared to SRM)

Enable the casual user !
Extending procurement process to indirect
One-Client target customers purchasing
… plans for empowering the casual user Reduced maverick buying and increased compliance
via catalog procurement
… do not use SAP SRM Optimize purchasing process/ streamline purchasing
… existing ECC customers department
Leverage workflow processes to enable the casual
buyer

A sustainable strategy !
Leverage existing system landscape*
Reuse SAP components
Minimal IT costs*

Easy licensing
No additional license costs
“Light” implementation of SRM optimized
consulting costs, accelerator based packages

* SRM user based pricing should be clarified (>5000 user migration may incur additional licenses)
* Landscape Costs may include additional app servers requirements based on overall system set-up


SAP SRM One Client
Capabilities

SAP SRM on One Client in SAP ERP released for the SRM scenarios
Service Procurement - External Staffing
Scenario run entirely in SRM i.e. Standalone deployment
Self-Service Procurement
Classic deployment + Multiple catalogs
Supplier Collaboration with Supplier Self-Services
EBP-SUS & MM-SUS supported

Deployed in two flavors*
With SRM 5.0 focus
With SRM 7.0 focus
(portal required)

* Assuming that customer is upgrading from EhP 3



Business Suite 7



SRM in One Client

Summary



At-A-Glance: Supplier Relationship Management
SAP SRM 7.0 – Cross Industry Enhancements Highlights

Central Contract Management Catalog Service Procurement
Central Contract in SAP ERP usable as Support for service items and hierarchies Transfer of external services items including
source of supply directly out of ERP Transfer of service hierarchies from SRM hierarchical structures from SAP ERP to SAP
Payment terms on item level Quotations or ERP MM SRV SRM
Currency on distribution level Enhancements of search user-interface Sourcing for Services
Push contract to catalog determination on for displaying services Service hierarchies presented as tree
item level or on header level New Features from MDM core structure or flat list including user-friendly
Multiple alert thresholds on contract level Extended flexibility of data modeling and search and go-to in sourcing cockpit
Expiration date complex objects Configurable item numbering within
Target value/released value Transport support for expressions, service hierarchies
Target quantity/released quantity matching strategies, workflows and maps Demand aggregation for service item
Release based rebates hierarchies
Exchange Rate Thresholds Source of supply determination for service
item hierarchies
Change Documents and Version
Management for Conditions Response modification allowed for RFx
based on preceding MM-SRV*
Records Management Integration
hierarchical service requirement
Mass Change of contracts out of Award
Catalog access for purchaser and bidder,
including hierarchical service structures
Sourcing Response modification items allowed to fulfill
original purchase requisition items
SOA based integration between demand in Procurement Excellence Supplier Self-Services for service item
SAP ERP and sourcing capabilities in SAP processing (Order Acknowledgement,
SRM, e.g. direct creation of bidding event out Service Entry Sheet, Invoicing)
Team Purchasing
of purchase requisition Define own procurement substitutes
Bidding Engine Enhancements Team Shopping Carts Stable Core and Suite Alignment
Confirmation of bidder’s participation Flexibility in Transfer and Mapping of Texts
Line-item revision level on all documents Revision level assigned to a material in SAP Unified Access via harmonized roles across
Chat ERP is available in SAP SRM ERP and SRM purchasing capabilities
RFx response modification Configuration of delivery date in Shopping Extended Workflow capabilities
Award on bid comparison view Cart TCO Reduction
Dutch Auction and automatic creation of Multiple G/L account handling and changed Enhancement Package Enablement
temporary contact person in auctions logic to retrieve default account assignment

SRM@BPX:
The SRM Community in the Business Process Experts Community

Learn. Find. Share. at SRM@BPX
BENEFITS
Find SRM news
Network with experts
Share best practices
Discover new practices
Get answers 24x7
Access product demos

CONTRIBUTORS
SAP Product Experts
Customers
Consultants
Partners
Analysts
You…

CURRENT HIGHLIGHTS
SRM 7.0
ESourcing 5.1
CLM 2.0
https://www.sdn.sap.com/irj/sdn/bpx-srm One Client

MCLA Webcast Series – Business Suite
Coming Sessions

Business Suite Process Platform Business Suite Supply Chain Management
June 19th (SCM)
July 16th

Business Suite Human Capital Management Business Suite Customer Relationship
(HCM) Management (CRM)
June 25th July 23rd

Business Suite Supplier Relationship Business Suite Product Lifecycle
Management (SRM) Management (PLM)
July 2nd July 30th

Business Suite Functional Improvements Application Optimization & Administration
(Enhancement Packs) (Solution Manager)
July 8th August 6th

Contact Person for futher information about past or coming Webcasts: Carina Friguglietti - carina.friguglietti@sap,com


Thank you!


Copyright 2009 SAP AG
All Rights Reserved

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